New York-based Kickstarter, the world’s largesst crowdfunding platform, officially launched in Canada. Kickstarter’s crowdfunding model allows investors to pledge cash towards a project in exchange for products and perks, but the pledges are conditional upon the entire funding goal being met.
The Canadian crowdfunding scene is currently dominated by Indiegogo. Prior to Monday’s official launch, some Canadian entrepreneurs were accessing Kickstarter by skirting the registration rules via American partners or American-registered businesses. A notable Kickstarter success story was the Pebble smartwatch project launched last year by Waterloo, Ont., native Eric Migicovsky.
According to co-founder Yancey Strickler, Kickstarter had long wanted to launch in Canada, but was kept away due to financial regulations. According to Doug Bruce, the VP of research for CFIB, the inclusino of Canadians is a significant step for small businesses, but entrepreneurs would benefit even moreso if they could woo investors with the promise of equity, in addition to just perks.